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BIG TAX BREAKS for Louisiana Families who Pay Private School Tuition!

Louisiana House Bill 650 and Act 687, which recently won approval during the 2018 regular session, makes families who pay tuition to K-12 schools eligible for a federal tax break by allowing families to open and use “START K12” savings accounts. This measure, referred to as the Student Tuition Assistance and Revenue Trust K-12 program, was made available to states through the federal Tax Cuts and Jobs Act of 2017 in which funds used to pay K-12 tuition are exempt from federal income tax.

According to a recent news article in The Advocate, State Representative Franklin Foil of Baton Rouge stats that “If I’m a parent or grandparent or relative of the student who invests money you can use this… it’s a great program for people who want to take advantage of it.”

According to the LOSFA’s START Saving Program website (http://www.startsaving.la.gov/savings/index.jsp), “software development will be required to implement the new START K12 program. Since the software development will take some time, Act 687 contains a transition provision for calendar year 2018 ONLY. This provision will allow START Account Owners who had an account as of December 31, 2017, to make a one-time withdrawal up to $10,000 from their START accounts during 2018 to pay tuition expenses related to kindergarten through twelfth grade.” According to The Advocate, accounts will be open to all families in 2019.

Forms are available at www.startsaving.la.gov/savings/pdf/disbursementk12.pdf